Five South African Fintech Dealmakers your startup should meet

Fintech is one of the fastest growing startup sectors in the world. A number of SA startups have secured multi-million rand investments of late, including in i-Pay, WiiGroup, Enterseckt and Luno.

KPMG estimates in a report last year that global investment in fintech companies grew from $19-billion in 2015 to over $31-billion in 2017.

While a number of insurance and financial services companies are involved in funding fintech startups — venture capitalists, accelerator heads and banking heads are also getting stuck in.

Ventureburn lists five dealmakers that entrepreneurs in the fintech sector should have a conversation with. Here they are.

Clive Butkow

Disruptive technology that is 12 months ahead of the competition. That is one of the things that venture capitalist Clive Butkow looks for when he picks tech startups to invest in (see this story).

His Kalon Venture Partners — a registered Section 12J Venture Capital Company picks tech startups to invest in (see this story) — already backs two fintech startups i-Pay (which Ventureburn lists among eight Gauteng startups to watch in 2018 — see here and here) and blockhain startup The Sun Exchange — which earlier this year took honours at the French VivaTech summit (see here).

Philip Kiracofe

Philip Kiracode heads Startupbootcamp AfriTech (initially named Startupbootcamp Cape Town). His accelerator is deeply involved in supporting African startups many of which are in the fintech sector.

The names of the 10 startups selected for the second cohort — which kicked off yesterday and will end in November– were announced in July.

Two of the four SA startups selected for the latest cohort are fintech companies. They are financial savings platform Akiba Digital and micro-savings solution Prospa.

Each of the 10 startups will be provided with €15 000, office space, access to over a 100 mentors and a network of industry partners, investors and venture capital firms.

The first cohort — run last year — included SA insurtech startups Fo-Sho and Strider and Yethu, a SA startup with an online management system help individuals in the informal sector to save.

The initiative’s first cohort were able to secure 32 agreements with large companies. In January investment platform EasyEquities put a crowdfunding startup investment offering, which was to help source funding for the 10 startup’s involved in the inaugural Startupbootcamp cohort, on hold (see this story).

Dominique Collett

Dominique Collett, the head of Johannesburg based fintech accelerator AlphaCode, says the accelerator aims to create a pipeline of fintech firms in which Rand Merchant Investment Holdings — which runs the programme — can invest in and grow (see this interview Ventureburn had with Collett last month).

Those Alphacode members that Rand Merchant Bank has recently invested in include SA startups Entersekt and Luno.

Since it was established in 2015 AlphaCode has also assisted 15 black-owned businesses through its AlphaCode Incubate programme with support as well as R13-million in funding. In July AlphaCode launched a new call for applications. The call closed on 31 August.

Collett says probably the biggest challenge for black-owned fintechs is understanding and navigating the legal and regulatory framework in South Africa.

The Incubate programme solves this by partnering with legal and regulatory experts and helping businesses understand what licenses they may need, applying for those licenses and staying abreast of an ever-changing regulatory environment.

Llew Claasen

Last year the firm invested an undisclosed sum into Wala, a Cape Town-based blockchain-enabled fintech platform.

The startup last month clinched the $100 000 grand prize in the 2018 Zambezi Prize for Innovation in Financial Inclusion. The prize is run by the Massachusetts Institute of Technology’s (MIT) Legatum Centre for Development and Entrepreneurship and the Mastercard Foundation.

Newtown Partners ran two ICOs last year — including one in June 2017 for Civic which raised $33-million (read more here) and another to fund theAugmentors game, which allows those that play the game a chance to buy rare creatures using in-game currency.

Claasen is also executive director of the Bitcoin Foundation. He is a much quoted expert on cryptocurrency. In July Claasen said the current lack of liquidity in the cryptocurrency market means it is harder for tech startups to raise funding via initial coin offerings (ICOs) from investors.

Akash Maharaj

SA bank and asset management group Investec is currently looking to invest in three or four early-stage SA fintech startups, Investec Emerging Companies spokesperson Akash Maharaj confirmed in July (see this story).

Investec would utilise Crossfin’s angel funding arm, Blue Garnet Investments to make the investments in the selected startups.

In the same month the bank invested an undisclosed amount in Retail Engage‘s Bonsella loyalty and rewards programme. Maharaj would not disclose the details of the equity investment deal.

Sean graduated from the University of the Witwatersrand with a B.Com Honours majoring in Corporate Finance & Investments covering a vast array of financial theories and applications.

Sean has since gained experience within the Insurance industry, then moving into the venture capital space where he is instrumental as an investment analyst at Kalon Venture Partners. Sean’s primary responsibilities in Kalon include: Preparations of Investment Memos and Due diligence reports for potential investee companies; Review of Kalon’s Pipeline; financial modelling, reviews, updates and analysis of the portfolio companies.

DANIEL STEIN

Daniel brings a number of years’ experience within the technical and marketing space, and uses his knowledge and expertise to generate new and ground breaking deal flow, co-ordinate and execute all brand building and capital raising exercises, along with developing and nurturing Kalon’s extremely valuable relationships with shareholders and the media.

Daniel’s passion and creativity for marketing and people led Daniel to pivot by first organising events which led him to studying digital marketing and beginning a career in this multi-faceted industry. He continues to study a wide range of skills required to stay current in the fast paced digital world. Daniel’s current responsibilities include investor and public relations, as well as managing the brand and social media platforms.

Daniel is passionate about marketing, venture capital and the exciting world of disruptive tech.

LERON VARSHA

Leron has over 20 years of experience as a technology specialist, and a wealth of experience in launching and growing companies. Leron completed his BCOM degree at the University of South Africa.

He started his career developing websites, managing and supporting networks and learning the ins and outs of all things technology related. Consequently, Leron’s entrepreneurial flair led him to found and run a multitude of companies in the fast-moving consumer goods space, garnering experience in sales and distribution, marketing and branding and overall operational expertise in running a multi-million-rand business. During his tenure of 9 years at the helm of the business, Leron negotiated with major multi-national brands and oversaw a turnover of a billion rand.

Leron is incredibly passionate about the new world of disruptive innovation and is excited about identifying and growing entrepreneurs in the venture capital tech space.

FATIMA HABIB

Fatima Habib, has a strong academic pedigree, and holds a Master’s Degree in Economics, Industrial and Labour Studies, HR and OD from the University of Natal (Now UKZN,) an Honours Degree in Applied Psychology (Wits) and an undergraduate degree in Social Sciences (University of Natal). Fatima successfully began her career with Deloitte and Touche, progressing to very senior positions in both corporate SA and the SA government. A seasoned executive, with over 20 years’ experience that spanned various environments from telecommunications, to a Wall Street firm in New York, and then private banking; following a career move to contributing to the public sector. Fatima has held a number of executive positions during her diverse career, including, inter alia, being the Executive Director: Corporate Services at the City of Cape Town, Executive: Corporate Services at the JDA, Regional HR executive at Telkom, GM of Absa Private Bank, Chief of Shared Services at SITA, Assistant GM at Smarte Carte.

Fatima has been appointed by the Minister of Basic Education, to Chair the ICT Advisory Committee to the Minister of Basic Education (DBE) and the Director- General of the DBE. She has previously served on the Board of SEDA, having been appointed by the Minister of Trade and Industry and currently serves on the boards of a number of companies where she sits on various board committees as well chairing these like them. In addition to being on the boards of companies, she also serves on boards of NPOs like The Bag Factory and The Gauteng Cricket Board.

GIL SPERLING

After graduating with a B.Sc Electrical Engineering from Wits University, Gil Sperling founded Popimedia at age 23. With his passion for tech, entrepreneurship skills and pure tenacity, Gil took Popimedia global with 7 international offices and to being the only Facebook Marketing Partner in Africa, one of 40 companies around the world. As one of the leading Ad Tech companies, Popimedia serves Fortune 500 brands globally using its proprietary platform meedee8. Seven years later, Popimedia was acquired by Public is Group.

Through his journey of entrepreneurship and scaling a company to exit, Gil invests, consults and mentors several technology companies, while also sitting on the board and investment committee of Kalon Venture Partners.

ROMEO KUMALO

Romeo is currently the CEO and Co-Founder of LLH Capital. He was previously the CEO of Vodacom/Vodafone International, responsible for all the African markets. In 2007, he was appointed to the board of Vodacom South Africa as Executive Commercial Director and was a member of the Vodacom Executive Committee until 2015. He served as non-executive director of Vodacom Tanzania, Lesotho, Mozambique, DR Congo and other Vodacom group of companies.

An accomplished leader and commercial strategist, with over 20 years’ experience in Information, Communication and Telecoms industries, a proven track record of building teams, creating value and turning around underperforming businesses, Romeo serves on various private company boards and holds a Master Degree in Commerce and executive management certificates from WITS, INSEAD, and HARVARD Business School.

GIL OVED

An astute businessman, qualified Chartered Financial Analyst, entrepreneur and investor, Gil is group co-CEO of The Creative Counsel (TCC) which he co-founded with Ran Neu-Ner in 2001. The company was acquired by Publicis Groupe, a leading global marketing, communication, and business transformation company in the largest deal in advertising history in South Africa and the African continent. Through television, Gil has been able to share his entrepreneurship lessons with a wider audience. He is currently on M-Net’s Shark Tank South Africa and was also one of the Dragons on Dragons Den South Africa, which premiered in the last quarter of 2014. Together with the four dragons from the Dragons’ Den South African, Gil has co-authored I’M IN, a book to inspire entrepreneurs through their collective lessons learnt in business.

Gil has won many awards, the most recent being the EY Southern Africa World Entrepreneur Award for 2016 in the Exceptional category. He is also the Johannesburg chapter chair for the Young Presidents Organisation as well as the Africa Regional Forum Officer.

NICHOLAS LIEBMANN

Nic completed a commerce degree majoring in finance at Bond University after which he gained international experience working abroad in the United Kingdom.

Nic established a wealth management company, which was acquired by Sasfin Bank Limited where he continued to work for 4 years, after which he left to set up Caleo Capital.

Nic has been in finance for over 15 years and is currently the co-founder and joint- CEO of Caleo Capital, an asset management company whose expertise span private equity, wealth management, financial advisory, property and venture capital. Caleo also manages a private equity portfolio of investments in the renowned Maboneng Precinct in central Johannesburg.

ARNOLD BASSERABIE

Arnold was the Group Chief Executive of Fedsure Financial Services Group from 1988 – 2001, during which time its asset base grew by 25% pa compound to R40b and its share price appreciated by approximately 20% pa compounded. Since then he has been a strategic business consultant, focusing on strategy and business development, mergers and acquisitions, and related activities, in a diverse range of industries. Arnold obtained a B. Sc (Mathematics; Math Stats) from the University of Witwatersrand, is a qualified actuary and a certified financial planner.

His awards include: Insurance Man of the Year, IMM Marketing Man of the Year, Jewish Business Achiever of the Year and Lifetime Achiever, and the World Presidents Organisation’s International Best of the Best Regional Chair.

CLIVE BUTKOW

Clive is the former Chief Operating Officer (COO) of Accenture South Africa, and has 28 years management consulting experience. During his tenure at Accenture (formerly Arthur Anderson and Anderson Consulting), he played numerous leadership roles including managing director of Accenture South Africa’s Technology business as well as managing director of Accenture’s Resources and Utilities businesses. In addition to his COO role, during the last 6 years, he led sales for Accenture’s Technology business, cultivating an entrepreneurial mind-set, which helped grow Accenture into one of the top emerging market companies.

Clive has developed deep technology skills from working across multiple industries including Financial Services, Resources, Retail, Automotive and Communications. He has leveraged these technology and business transformation skills and helped drive significant shareholder value for many South African clients. Since January 2013, he has supported and mentored many technology businesses, assisting them in driving growth. Clive sits on the boards of numerous IT companies.

Clive joined Arthur Anderson in 1985 (now Accenture) after graduating from the University of the Witwatersrand with a B.Sc. degree in Computer Science and Applied Mathematics. Clive joined Grovest, section 12J venture capital company in 2012, as a non- executive director.

In 2016, Clive formed a new venture capital company, Kalon Venture Partners, focusing on investing in digital disruptive technologies.

Malcolm Segal

After qualifying as a Chartered Accountant from the University of Witwatersrand in 1972, Malcolm practiced as a partner of Grant Thornton (Chartered Accountant and Business Advisers) and was elected managing partner of the Johannesburg office in 1986 and National Executive Chairman in 1989. Malcolm resigned from Grant Thornton in 1997 to establish a private equity investment fund, which he managed until acquired by Sasfin Holdings Limited in 2005. In February 2012, Malcolm resigned from the boards of both Sasfin Holdings Limited and Sasfin Bank Limited to enable him to pursue his passion – entrepreneurship and entrepreneurial investment activities.

Malcolm currently sits on the boards of various companies in which he holds private equity investments and inter alia is also an External Member of the Special Credit Committee of the Industrial Development Corporation of South Africa Limited and a member of the Listings Advisory Committee of AltX (Alternate Exchange of the Johannesburg Securities Exchange). Malcolm is also the Chairman of VCMS.